Public Markets 8-Hour Briefing
×Energy Markets
Oil prices surged past $100 a barrel as the Middle East conflict escalated, triggering a selloff in global stocks. Wheat futures jumped nearly 5% from pre-conflict levels as surging oil and fertilizer prices compounded supply concerns. Saudi Arabia began reducing oil production as the Strait of Hormuz closure filled storage tanks, while Bahrain’s Bapco declared force majeure on operations.
Regional Impact
Asian energy buyers scrambled to secure supplies as the war entered its second week, with fuel cargoes redirecting to the region amid worsening supply crunches. South African bonds plunged in their worst selloff since COVID as oil price surges and a weaker rand fueled inflation fears. Philippine firms braced for rising costs as oil’s spike above $100 dragged the peso to record lows.
Market Volatility
European blue chips fell toward correction territory as Middle East tensions sent oil soaring past $100, reigniting inflation fears. European gas prices jumped 30% as the war disrupted seaborne supplies. German industrial production declined at the start of the year, with further headwinds expected from the Iran conflict.
Monetary Policy
Traders boosted ECB and BOE rate-hike bets as energy prices soared, fueling inflation concerns. The Bank of England now faces a chance of hiking rates this year. Pakistan’s central bank held its key rate at 10.5% amid oil price uncertainty.
Corporate Moves
Agilent Technologies agreed to acquire cancer research instrument maker Biocare Medical for $950 million in an all-cash deal. Victory Giant Technology is preparing a Hong Kong listing to raise over $2 billion. Aier Eye Hospital Group is considering a Hong Kong IPO, joining mainland firms seeking to sell shares in the city.
Technology & Innovation
Nasdaq partnered with Kraken to plan 24/7 tokenized stock trading, seeking approval to let investors trade tokenized versions of listed stocks. Hims & Hers shares doubled on reports of a potential Wegovy tie-up. Nscale raised $2 billion with Sheryl Sandberg joining its board.
Financial Markets
US stock futures dropped as oil spikes boosted inflation fears, extending the biggest weekly decline since October. European banks topped estimates in a mixed earnings season, buoyed by trading income. Credit risk measures jumped, pushing European bond sales on hold as war concerns mounted.
Government Response
G-7 ministers prepared to discuss a joint release of emergency oil reserves. Italy’s Prime Minister Meloni planned fast-track legislation to tackle energy price spikes. Qatar Energy pushed back a major LNG expansion to 2027 after the Iran drone attack.
Market Sentiment
A "stampede to sell" in stocks and bonds occurred as crude prices surged, though markets later recovered some losses on prospects of government reserve releases. Stagflation trades swept markets as Trump signaled a widening war. Investor confidence in the euro zone plummeted due to the Iran conflict.
Other Developments
Live Nation reached a settlement in the federal antitrust case, avoiding a potential breakup. Mexico’s annual inflation accelerated past the central bank’s target range in February. Dangote Refinery prioritized fuel supply to Nigeria amid the crisis. Dangote Fertiliser saw substantial order increases as the US-Israel war disrupted supplies.